DP Poland Delivers Steady Q1 Performance Amid Challenging Conditions
Why we think this is neutral
DP Poland's Q1 2025 trading update shows moderate revenue growth in Poland and strong growth in Croatia, but the company faces some headwinds from a challenging macroeconomic backdrop and rising costs. While the acquisition of Pizzeria 105 represents a strategic step forward, the RNS lacks details on profitability, cash flow, and valuation, leading to a neutral sentiment assessment.
Key Points
- Total system sales in Poland grew 6.5% year-on-year in Q1 2025
- Like-for-like system sales in Poland up 2.9% year-on-year
- Total and like-for-like system sales in Croatia both grew 12.7% year-on-year
- Completed acquisition of Pizzeria 105, accelerating sub-franchising strategy
- Facing challenges from "challenging macroeconomic backdrop" and rising costs
Summary
DP Poland's Q1 2025 trading update shows the company's total system sales in Poland grew by 6.5% year-on-year, with like-for-like sales up 2.9%. In Croatia, total and like-for-like system sales both grew 12.7% year-on-year. The company also completed the acquisition of Pizzeria 105, which it says will accelerate its sub-franchising strategy. However, the RNS notes a "challenging macroeconomic backdrop" and "cost pressures, notably in labour", which have led to pricing adjustments. Management reiterates its guidance for pre-IFRS 16 EBITDA of £1.2 million for 2024.